The artist has handed over the entirety of his £25,000 honor cash to the Music Venues Trust, which functions to save the Britain's grassroots concert spaces.
The star was given the cheque on October 16 as his new release People Watching was named the best record of the last 12 months.
He has decided to hand the money over to the MVT, in recognition of the vital role grassroots venues played in his initial steps.
"As an artist would not have achieved this success if it wasn't for all the gigs I performed around the area, and elsewhere, when I was beginning," remarked Sam Fender. "These locations are iconic, but they are struggling."
From early 2023 onward, over 150 of these venues have permanently closed – roughly 16 percent of the entire UK sector.
Over the past year, major artists like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its attempts to keep the scene afloat, by applying a modest fee to their ticket prices, which goes to help independent venues.
Fender also joined in, raising in excess of £100,000 on his live tour to help 38 small stages across England, Scotland, and Wales.
The donation supported spaces that were facing imminent closure due to issues arising from water damage, fires and family tragedies, as well as permit problems, legal disputes and neighbor objections.
Additional spaces received funding support in improving facilities and technical equipment that positively impacted performers and audiences.
"The notion that revenue from shows in major spaces helps the local stages, where it begins for artists like me, is just logical," the star has stated.
The musician is among several artists to contribute his Mercury Prize winnings to good deeds.
When they earned the award in the year 1996 for their album Different Class, frontman Jarvis Cocker announced that the band would donate their prize money to the organization the charity.
During 2002, rapper and singer she shared her prize between multiple charities, such as the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a £1,000 to Highgate Newtown, to their classes, because I trained in gymnastics when I was growing up and they required new equipment," she shared with a publication.
In recent years, the band contributed their winnings to the local youth club that developed their act, in addition to other grassroots music organisations.
Additionally 1994 winners the group gave their prize to a multiple sclerosis charity after a acquaintance was found to have the disease.
"Winning was sufficient," said singer Small. "The money was the extra but we could do without the extra, because we had the cake. So our victory affected another person's life."
Last week, the trust shared it had rescued two grassroots venues in the South East, by transferring them to community ownership.
The Joiners in the city and The Croft in the city were purchased under the Own Our Venues program, which is backed by the arts council and music fans who purchase "stakes" in the venues.